US Rig Count in Two Charts

Drilling activities remain strong.  The US oil-directed rig count recovered by 10 rigs after it decreased by 10 rigs last week.  The recovery ended two emerging trends: the decline in oil-directed rig count in general and the decline in the rig count in the Gulf of Mexico (GoM). Companies added 7 oil rigs in tight plays and 6 in the Gulf of Mexico.  This indicates that the recent decline was due to moving rigs and not to a decline in drilling activities.

In addition, the upward trend in natural gas-directed rig count in the Permian ended with a decline of 7, leaving only 2 operating rigs in the Permian.    

Figure (1)

US Oil-Directed Rig Count in Tight Oil Plays

Source: BH 2023 & EOA, 2023

Figure (2)

US Oil-Directed Rig Count In Tight Oil Plays Vs. Oil Prices ($/b)